Car rental providers Hertz Global (NYSE:HTZ) and Dollar Thrifty Automotive Group (NYSE:DTG) jointly announced yesterday an agreement to increase the acquisition price of Dollar Thrifty, valuing the company at $1.56 billion.
Hertz and Dollar Thrifty’s share price has rallied 6.97% and 5.14%, respectively, as of 3:14 pm ET.
Under the amended merger agreement, Hertz would acquire Dollar Thrifty for $50 per share consisting of $43.60 in cash and 0.6366 of a share of Hertz common stock, valued at the Friday, September 10, 2010 closing price of Hertz stock of $10.05. The new acquisition price is $10.80 higher in cash consideration than the previous offer and represents a 4% premium to Dollar Thrifty`s Friday closing price.
Other provisions are unchanged, including the $44.6 million termination fee payable to Dollar Thrifty if antitrust clearance is not obtained. In an attempt to receive regulatory approval, Hertz announced that it has begun divesting Advantage Rent-a-Car and said the company has already received interest from several unsolicited parties.
Hertz has car rental outlets at 8,300 locations in 146 countries around the world. The company also operates the Advantage car rental brand at 26 airports in the U.S., and Connect by Hertz, in New York City, Berlin, London, Madrid and Paris. Hertz also operates an equipment rental business, Hertz Equipment Rental, at approximately 325 branches located in United States, Canada, China, France, Spain and Italy.
Dollar Thrifty`s has a about 300 car rental outlets are located across the United States and Canada with approximately 6,000 employees. Dollar Thrifty also offers its services abroad through a franchise network of over 1,250 franchises.